Andorra is working on a regulatory framework for blockchain technology that will open the door to the regulation of cryptocurrencies. As there are currently no regulations in force to legislate this type of activity, the principality could be one of the first countries to have its own legislation.
Andorra and blockchain: another step towards digital transformation
This is one of the 77 initiatives proposed by the government in Horitzó 23, Andorra’s economic plan. The digital transformation section includes a modification of Law 35/2014 to qualify blockchain as an electronic trust service in Andorra. This amendment is intended to be submitted to the Consell General (Andorran parliament) before the end of the year so that it can be approved during the coming year.
Modification of the electronic trust law
In order to regulate cryptocurrencies and tokens, the law provides for the possibility that the principality may issue local and international digital assets. This is important for regulating the new framework of digital assets and, at an international level, for attracting foreign investment by creating a stock market through blockchain in Andorra.
The creation of a licence by the AFA (Andorran Financial Association) that companies operating with these assets will be able to obtain is also under discussion. In addition, this regulation would allow banks to develop other financial activities in parallel to traditional banking.
Investing in cryptocurrencies in Andorra
Andorran residents can invest in cryptocurrencies, such as Bitcoin, but they will have to pay income tax on any returns. At Advantia Assessors we can help you manage the necessary procedures.
Blockchain projects in Andorra
Andorra is also a pioneer in the use of this technology for the digitisation and issuance of academic titles. This system makes it easier to verify and confirm a degree certificate, allowing for the possibility that, in the future, an apostille will no longer be required for the recognition of foreign documents. This project is being propelled by the collaboration of public institutions and private companies.
In Andorra, we are looking to the future by continuing to build a country that is desirable to live in, not only due to its numerous advantages in terms of standard of living, but also because of its business opportunities.